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TDM to expand plantation, healthcare business

Posted on: March 20, 2009

Bernama – Friday, March 20

KUALA LUMPUR, March 19 (Bernama) — TDM Bhd plans to expand its plantation and healthcare business, while disposing the loss-making poultry venture, in a move to focus on areas where it has competency.

ts chief executive officer, Badrul Hisham Mahari, said in the plantation business, the group was now expanding to Kalimantan and had started clearing land there.

TDM presently manages 12 oil palm estates with a total of 35,000 hectares in Terengganu.

The group is developing over 40,000 hectares of oil palm plantation in West Kalimantan, Indonesia, and is also interested to acquire land for the purpose in Malaysia if there is an opportunity, he said at a media briefing here today.

He said the group should start to reap the returns from its investment in Kalimantan by 2011-2012.

He said the group expected its fresh fruit bunches production this year to exceed 600,000 metric tonnes compared to 595,000 tonnes last year.

The group has set aside a third of its profit for payment of dividend to shareholders, a third as reserves and a third for growth and expansion.

Badrul said the plantation business which contributed 95 percent to group profit, will remain profitable this year.

With CPO prices projected to range from RM1,500 – RM2,100 per tonne this year, it will still be below the group’s average cost of RM1,100 per tonne, he explained.

On its healthcare segment, chairman Senator Datuk Roslan Awang Chik, said the group will focus on the east coast.

He said TDM intended to go for the medium priced market and set up hospitals with 100-150 beds.

He said the group which has two hospitals in the East Coast, namely in Kuantan, Pahang, and Kuala Terengganu, Terengganu, is eyeing another town in the region.

He said the healthcare segment contributed four to five percent of the group’s profit, adding that the group would be satisfied if the profit grew by 1-2 percentage point annually.

The loss-making poultry business will be disposed off as soon as possible when a buyer is found, he said.

He said the group will be looking for a buyer interested in operating the integrated business as a going concern.

Its poultry business has the capacity of processing 300,000-500,000 birds per month.

On the issue of liquidity for the trading of TDM shares, Badrul Hisham said it would be addressed within three years.

TDM is controlled by the Terengganu state government. — BERNAMA


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